In 2002,WorldCom Was Accused of Falsifying Information Regarding Liabilities on WorldCom's

question 85

Multiple Choice

In 2002,WorldCom was accused of falsifying information regarding liabilities on WorldCom's balance sheets,thereby

• A)increasing WorldCom's assets on the balance sheet.
• B)reducing WorldCom's profit on the balance sheet.
• C)increasing WorldCom's net worth on the balance sheet.
• D)reducing WorldCom's net income on the income statement.

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Definitions:

Common Stock

An equity security that represents ownership in a corporation, entitling shareholders to a share of the company's profits through dividends.

Dividends

Payments made by a corporation to its shareholder members from its profits.

Net Income

The amount of money a company effectively earns as profit after reducing its revenue by expenses and taxes.

Trial Balance

A worksheet for accounting where the total balances of all ledgers are arranged into equal debit and credit columns.